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Miller Industries (MLR) Q2 EPS Soars Y/Y on High Production Volumes

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Miller Industries, Inc. (MLR - Free Report) reported a robust performance in the second quarter of 2024, with earnings per share (EPS) rising to $1.78, marking a 37.7% increase compared to $1.29 in the second quarter of 2023. 

Revenues also saw a significant uptick, climbing 23.7% year over year to $371.5 million from $300.3 million. This growth is attributed primarily to increased production volumes and consistent demand, alongside sustained elevated OEM chassis deliveries. 

The company has managed to decrease its backlog to more historical levels, improving the flexibility for distributors and reducing lead times for retail customers. The solid order entry rate demonstrates the effectiveness of the salesforce and the competitive edge of the company's products.

Miller Industries, Inc. Price, Consensus and EPS Surprise

Miller Industries, Inc. Price, Consensus and EPS Surprise

Miller Industries, Inc. price-consensus-eps-surprise-chart | Miller Industries, Inc. Quote

Key Business Metrics

Gross margin improved modestly to 13.8% from 13.3%, driven by the increased scale of operations and efficient production processes. 

Selling, general, and administrative expenses were effectively managed, amounting to $22.8 million or 6.1% of net sales, reflecting a slight improvement in efficiency from 6.5% of net sales in the prior-year period. 

Net income saw a notable rise, reaching $20.5 million, up 37.5% from $14.9 million in the year-ago quarter.

Balance Sheet Position (As of Jun 30, 2024)

Miller Industries reported a decrease in cash and temporary investments, which stood at $23.8 million, down from $29.9 million at the end of 2023. 

Total assets increased to $748.2 million from $647.2 million in 2023 end.

Long-term obligations rose from $60 million at the end of 2023 to $70 million as of Jun 30, 2024. 

Total shareholders' equity also saw a rise, moving from $347.9 million at the end of 2023 to $379.9 million as of Jun 30, 2024.

Management Guidance

Looking forward, Miller Industries has revised its 2024 revenue growth expectations from high single digits to low double digits, anticipating continued strong performance based on the current operational momentum. Management remains focused on optimizing product transition from distributors to end users to maintain robust cash conversion rates.

Other Developments

Significant developments include the continuation of the company's shareholder return strategies, underscored by a consistent dividend payout and a $25 million share repurchase program announced in April 2024. These actions reflect the company's ongoing commitment to delivering shareholder value amidst its operational expansions. 

Miller Industries has declared a quarterly cash dividend of 19 cents per share, payable on Sep 16, 2024, to shareholders of record at the close of business on Sep 9, 2024. This marks the fifty-fifth consecutive quarter that the company has paid a dividend.


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